For the purpose of explaining interindustry variation in the geographic distribution of firms, this article explores the impact of product heterogeneity on the incentives for firms to cluster in the presence of a ubiquitous "periphery" of stand-alone firms. Our analysis revolves around two...

The aim of this paper is to revise and correct the results obtained in Beladi et al. [Beladi, H., Chakrabarti, A., Marjit, S., 2010. Cross-border merger, vertical structure, and spatial competition. Economics Letters 109, 112-114]. Specifically, we prove that the Nash equilibrium locations of...

We consider a quantity-location duopoly game in a spatial discrimination model in which we assume that the delivered goods can be imperfect substitutes or complements. The paper extends the analysis by Shimizu [Economics Letters 76 (2002)] who provides arguments to exclude the possibility for...

Endogenous firm location is analyzed in a discrete two-region-two-firm model of product differentiation. In a non-cooperative game, two regional governments first decide on the imposition (or lifting) of domestic production standards; firms then choose technology (clean or polluting), location...

We investigate the entry timing and location decisions under market-size uncertainty with Brownian motions in a continuous-time spatial competition duopoly model a la d'Aspremont et al. (1979). Under a sequential equilibrium, the threshold of the follower non-monotonically increases in...

It is well known that two-sided network effects may turn duopolistic markets into monopolies, but it is still in question under which conditions this occurs in practice. To derive the conditions in which a platform market is tippy, I develop a differential game framework incorporating product...

In this paper, we examine the impact of horizontal and vertical market structure on product variety. We consider a market for horizontally differentiated products in which the cost of launching a new product is fixed and spread between the manufacturing and the retail industries. While this...

We provide a simple model to investigate decisions on vertical integration/separation. The key feature of this model is that more than one input is required for the final products of the local downstream monopolists. Depending on their cost structure, downstream firms' decisions on vertical...